Paychex payroll processing review February 2018 | finder.com

Paychex payments and payroll review

Paychex is a popular way to pay employees in the US, boasting payments to 1 in 12 private-sector employees.

What is Paychex?

Founded in 1971, Paychex is a leader in the payroll industry serving approximately 605,000 payroll clients in more than 100 locations. To give you an idea of its scale, Paychex claims that it pays 1 in 12 American private-sector employees.

You can access Paychex tools anytime through the web and an app to pay employees and contractors easily. Payments options include direct deposit, paper checks and prepaid debit cards. It even provides reporting options, 401(k) and retirement services and insurance options.

These benefits come at a price, but that’s expected when it comes to outsourcing your business payroll. Depending on the size of your company, you’ll pay from $60 per employee up to $3,364.50 per year for 10 employees.

Minimum and maximum payment amountsTransfer methodsService feesCustomer service
NoneBank deposit, prepaid debit card, paper check$60 per employee; $3,364.50 per year for 10 employees; $200 in setup fees24/7 phone and email support

Pros and cons of Paychex

Pros

  • Easy web and mobile access.With a single sign-in for easy management.
  • Quality reporting capabilities.Import or export information from other services.
  • Safe, secure services.Paychex protects your and your employees’ info.

Cons

  • Higher costs.Paychex can be more expensive than other options.
  • No one-time payments.Paychex is for regular payroll needs.
  • You’ll pay extra for W-2s and 1099s.Fees start at $60 plus $6.25 per employee.
  • Customer service is hit or miss.Some users have experienced difficulty getting a sales rep to call them back.

How do I use Paychex?

Paychex is a payroll service that makes paying employees easier. Business owners register and pay for the service using its software before paying employees.

Paychex payment services include:

  • Direct deposit. Paychex deposits payroll funds right into employees’ accounts so they can access their money on payday.
  • Paper checks. Employer’s signature is laser-encoded on checks and inserted into envelopes. This saves time and costs between $2.87 to $3.15 per payment.
  • Skylight® PayOptions. For employees that want the convenience of direct deposit but don’t have a bank account, Paychex’s Skylight deposits payday money onto a debit card.

Cost of Paychex for business owners

Price. $3,364.50 per year for 10 employees
Setup fee. One-time fee of $200
W-2 and 1099s. $60 plus $6.25 per employee or $122.50 for 10 employees

If you call a Paychex sales representative, you may receive a discount of up to 40%. Paychex sometimes offers promotions and discounts that waive the $200 setup fee, so be sure to ask. Discounts and promotions with Paychex are typically time-sensitive, so keep an eye out for them.

What happens once I’ve made a payment?

Once a payment is made, you and your employee will receive an email or notification on the mobile app. There is a 15-minute holding period before the scheduled funds are moved to the employee’s account.

What else does Paychex offer?

Paychex seems like a one-stop shop, offering everything from online marketing to employee recruitment.

  • Employee benefits. Offer 401(K) retirement plans, group health insurance, life insurance, or Section 125 plans (such as Health Savings Accounts or Flexible Spending Accounts) to your employees.
  • Business insurance and workers compensation. Paychex can provide you with workers comp or business insurance, including payment and reports submittal.
  • Payment processing. Accept more types of payment including debit, credit, ACH Payment and eChecks. Get the option of next-day funding and only pay for monthly billing (vs daily billing with some competitors). Integrates with Quickbooks and special medical and dental programs.
  • HR services. Stay on top of mandatory compliance for workers comp, unemployment insurance, and COBRA administration. Make an easy online employee handbook and even recruit, track and screen new employees.

Bottom line

If you’re a US business owner, Paychex is an ideal option for managing your payroll as well as retirement services and insurance options. But you’ll want to compare your needs against your options before settling on a payroll service for your business.

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